GST roll-out: Tax refund on stocks without invoice may go up

Under GST, tax paid on stock transfers is fully available as input tax credit

In some relief for business, the goods and services tax (GST) Council might on Saturday enhance the refund limit for input taxes already paid on existing stock with traders without an invoice, up from the 40 per cent decided earlier.

This comes after strong demand from companies. The latter have argued that a partial credit refund will adversely impact the supply chain, as most distributors would like to get into the GST regime with zero heldover inventory. Business’ demand for enhancement of the refund limit ranges between 60 and 100 per cent.

“We will address the concern. We have proposed